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Insiders at Victoria's Secret & Co. (NYSE:VSCO) Sold US$3.3m Worth of Stock, Possibly Indicating Weakness in the Future

Simply Wall St ·  Sep 29, 2022 12:15

Over the past year, many Victoria's Secret & Co. (NYSE:VSCO) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Victoria's Secret

Victoria's Secret Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO for Victoria Secret and PINK, Amy Hauk, sold US$1.9m worth of shares at a price of US$58.77 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$31.63. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Victoria's Secret didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volumeNYSE:VSCO Insider Trading Volume September 29th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Victoria's Secret Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Victoria's Secret insiders own 11% of the company, currently worth about US$283m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Victoria's Secret Tell Us?

It doesn't really mean much that no insider has traded Victoria's Secret shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Victoria's Secret insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Victoria's Secret.

Of course Victoria's Secret may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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